The seasoned bitcoiners have said relatively little goodbye to their bitcoin, despite the all-time high of $69,000 (~60,000 euros) that we hit this year. According to the ‘Coin Days Destroyed’ statistic from on-chain analytics company Glassnode, the more experienced bitcoiners are keeping their bitcoin inboard. It is mainly the younger bitcoin that was bought in the summer around a price of 30,000 dollars (26,400 euros) that will start moving again in the fourth quarter of 2021.
It is interesting to see that people who have had their bitcoin for years are not impressed with the rates we have seen in 2021. If this cohort of the bitcoin hodlers wasn’t convinced about the future of bitcoin, then the relatively high rates could be a reason to sell their bitcoin. It is clear that this group of bitcoiners still expects a lot from the digital currency in the coming years.
A closer look at the Coin Days Destroyed statistic
We already mentioned it in the introduction, the Coin Days Destroyed (CDD) statistic from Glassnode. But what does this statistic actually mean and say? In essence, the CDD indicates how long each bitcoin has remained in the same place on average before being included in a subsequent transaction. It’s a relatively easy way to gauge market sentiment and determine which groups of bitcoiners are currently selling their bitcoin.
In fact, the CDD provides additional information about the trading volume on the bitcoin blockchain. Thanks to this statistic, we can pinpoint exactly which types of hodlers are selling their bitcoin and then make an analysis about that. Bitcoin that has been at the same address for a longer period of time are probably from seasoned hodlers, while bitcoin that has only recently moved to a new address are from new audiences.
The 90-Day Coin Days Destroyed #Bitcoin metric shows the behavior of what older coins are doing. Rising values show older coins being spent.
Despite a rise over the last few months, the current value is still around historic lows. pic.twitter.com/NS2TTNnZso
— UTXO Management (@UTXOmgmt) December 27, 2021
“Despite an increase over the past few months, the current value of the CDD is still historically low,” tweeted UTXO Management. Where this statistic was still briefly in the air at the beginning of 2021, we are now far from the level we reached during, for example, the top of the 2017/2018 cycle of bitcoin. Which would mean there is still room for bitcoin to grow in this cycle.
Summer buyers sell in winter
It is mainly ‘young bitcoiners’ who are currently selling their bitcoin. People who bought their bitcoin in the summer now choose to sell their bitcoin again with a relatively modest profit. This is confirmed by Unchained Capital’s HODL Waves. Bitcoins that have been with their new owner for between three and six months are currently the most sold.
Which means that the sellers bought their bitcoin between June and September of this year, the period in which the bitcoin price dipped to 30,000 dollars (26,400 euros). The remaining groups of bitcoin hodlers are mainly in a mode of accumulation.
#Bitcoin is once again in accumulation mode. pic.twitter.com/BezC2AUewO
— Dylan LeClair ???? (@DylanLeClair_) December 23, 2021
Which means that despite the current prices they are still fanatically adding to their stocks. “Bitcoin has entered another period of accumulation,” said on-chain analyst Dylan LeClair via Twitter. According to the analyst, during this period the ‘pressure’ is built for another burst upwards in the bitcoin price. We will see. Because if we know one thing about the bitcoin market, it is that it is almost unpredictable.
–
